People from flood-affected areas wait for food distributed by a charity in southern Sindh province, Pakistan. The country has been devastated by deadly floods amid rising global temperatures. AP
People from flood-affected areas wait for food distributed by a charity in southern Sindh province, Pakistan. The country has been devastated by deadly floods amid rising global temperatures. AP
People from flood-affected areas wait for food distributed by a charity in southern Sindh province, Pakistan. The country has been devastated by deadly floods amid rising global temperatures. AP
People from flood-affected areas wait for food distributed by a charity in southern Sindh province, Pakistan. The country has been devastated by deadly floods amid rising global temperatures. AP

Co-ordination gap likely to set back climate progress by decades, IEA, Irena and UN say


Sarmad Khan
  • English
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The world needs far greater international co-operation to meet its climate commitments and a collaboration gap between countries can severely undermine climate progress, delaying net-zero targets by decades.

Nations around the globe must align actions and co-ordinate investments to scale up deployment and drive down costs across five key sectors: power, road transport, steel, hydrogen and agriculture, according to a report produced jointly by the International Energy Agency (IEA), the International Renewable Energy Agency (Irena) and the UN.

Together, these sectors account for about 60 per cent of global greenhouse gas emissions and could deliver the bulk of the emission reductions needed by 2030 that would make a significant contribution to limiting global warming to a maximum of 1.5°C in line with the Paris Agreement goals, the Breakthrough Agenda, as the report is known, said.

Against the backdrop of the current energy crisis and looming global food shortages, the report has set out the agenda of 25 collaborative actions for global leaders attending Cop27 in Egypt that could help boost the production of clean power, electric vehicles, low-carbon steel and hydrogen.

These steps could help make sustainable farming a cheaper option and provide food security to billions of people around the world.

“We are in the midst of the first truly global energy crisis, with devastating knock-on consequences across the world economy, especially in developing countries. Only by speeding up the transition to clean sustainable energy can we achieve lasting energy security,” said IEA executive director Fatih Birol.

“Through international collaboration, we can make the transition quicker, cheaper and easier for everyone,” as without this, the transition to net-zero emissions will be “much more challenging”, he added.

Global leaders are pushing for a net-zero transition by 2050 and to meet the Paris Agreement goal to limit global warming to 1.5°C above pre-industrial levels.

There is a stronger emphasis on building a greener and more sustainable economy as the world emerges from the pandemic. Governments around the globe have committed to cutting their carbon footprint and have set ambitious targets to meet global climate action goals.

Climate change could cost the global economy $178 trillion over the next 50 years, or a 7.6 per cent cut to the global gross domestic product in 2070, if left unchecked, a June report by Deloitte showed.

However, if global leaders unite and meet the net-zero goals, the global economy could gain $43tn in the next 50 years, giving global GDP a 3.8 per cent boost in 2070, the report found.

The joint report from the IEA, Irena and the UN said that, in addition to delivering on emissions reductions, global leaders also need to ensure a faster and cheaper transition, while boosting job growth.

The report, released before the Global Clean Energy Action Forum to be held in the US from September 21 to 23, has put forward 25 recommendations for policymakers.

These recommendations range from demonstrating and testing flexible low-carbon power systems to increasing renewables, creating cross-border super-grids this decade, reducing emissions and improving energy security.

They also call for setting up new international centres of expertise to channel finance and technical assistance to help coal-producing countries transition, mobilise investment in charging infrastructure and standards to boost the recyclability of batteries and supercharging.

The report also underlined some of the achievements already made in recent years, including a 130 per cent increase in renewable capacity in the past decade, as opposed to a 24 per cent growth of non-renewable sources over the same period.

However, the power sector needs to deliver an additional renewable capacity of 630 gigawatts for solar and 30 gigawatts of wind each year by 2030, four times the current annual increase.

It called on governments to increase the scale, co-ordination and accessibility of international support for the power sector transition, reassess the opportunities for cross-border and regional power interconnection and agree to higher minimum energy performance standards for high energy-consuming appliances.

Within the road transport sector, zero-emissions vehicles accounted for about 9 per cent of global car sales in 2021, a ratio that needs to reach 60 per cent by 2030 and be supported by a 10-fold increase in public charging infrastructure.

The report called for an agreement on a common definition and target dates by which all new road vehicles will be net zero, with a 2035 target for cars and vans and one in the 2040s for heavy-duty vehicles, and mobilising investment in charging infrastructure.

Production of renewable and low-carbon hydrogen will need to increase from less than one million tonnes in 2020 to about 150 million tonnes by 2030, doubling each year.

Similarly, the production of low-carbon steel, which currently stands at less than one million tonnes today, needs to rise to more than 100 million tonnes by the end of this decade to deliver a reduction in the emissions intensity of 30 per cent, the report said.

Agriculture and related land use account for about 20 per cent of global emissions and the sector requires a ramp-up of investment in research and development of new technologies to improve yield and stop deforestation, it added.

“The energy and climate crisis has exposed the weaknesses and vulnerabilities of a system heavily reliant on fuels of the 20th century,” said Francesco La Camera, director general of Irena.

“Advancing the transition to renewables is a strategic choice to bring affordable energy, jobs, economic growth and a cleaner environment to the people on the ground.”

The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

MATCH INFO

Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai

UAE currency: the story behind the money in your pockets
UAE%20v%20West%20Indies
%3Cp%3EFirst%20ODI%20-%20Sunday%2C%20June%204%20%0D%3Cbr%3ESecond%20ODI%20-%20Tuesday%2C%20June%206%20%0D%3Cbr%3EThird%20ODI%20-%20Friday%2C%20June%209%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3EMatches%20at%20Sharjah%20Cricket%20Stadium.%20All%20games%20start%20at%204.30pm%0D%3Cbr%3E%0D%3Cbr%3E%3Cstrong%3EUAE%20squad%3C%2Fstrong%3E%0D%3Cbr%3EMuhammad%20Waseem%20(captain)%2C%20Aayan%20Khan%2C%20Adithya%20Shetty%2C%20Ali%20Naseer%2C%20Ansh%20Tandon%2C%20Aryansh%20Sharma%2C%20Asif%20Khan%2C%20Basil%20Hameed%2C%20Ethan%20D%E2%80%99Souza%2C%20Fahad%20Nawaz%2C%20Jonathan%20Figy%2C%20Junaid%20Siddique%2C%20Karthik%20Meiyappan%2C%20Lovepreet%20Singh%2C%20Matiullah%2C%20Mohammed%20Faraazuddin%2C%20Muhammad%20Jawadullah%2C%20Rameez%20Shahzad%2C%20Rohan%20Mustafa%2C%20Sanchit%20Sharma%2C%20Vriitya%20Aravind%2C%20Zahoor%20Khan%0D%3C%2Fp%3E%0A

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

UAE currency: the story behind the money in your pockets
THE%20SPECS
%3Cp%3EEngine%3A%203-litre%20V6%20turbo%20(standard%20model%2C%20E-hybrid)%3B%204-litre%20V8%20biturbo%20(S)%0D%3Cbr%3EPower%3A%20350hp%20(standard)%3B%20463hp%20(E-hybrid)%3B%20467hp%20(S)%0D%3Cbr%3ETorque%3A%20500Nm%20(standard)%3B%20650Nm%20(E-hybrid)%3B%20600Nm%20(S)%0D%0D%3Cbr%3EPrice%3A%20From%20Dh368%2C500%0D%3Cbr%3EOn%20sale%3A%20Now%3C%2Fp%3E%0A
Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

Simran

Director Hansal Mehta

Stars: Kangana Ranaut, Soham Shah, Esha Tiwari Pandey

Three stars

ULTRA PROCESSED FOODS

- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns 

- Margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars

- Energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces

- Infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes

- Many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Updated: September 20, 2022, 2:47 AM